- On average, Australians pay $1,472 per year for car insurance.
- The cost of car insurance has risen significantly. Mozo found Australians pay 13% more than they did in the 2022 car insurance report, and 47% more since 2018.
- Victorian and NSW drivers pay the most on average, while Tasmanian and Western Australian drivers pay the least for car insurance.
- Cars get cheaper to insure as they age, but the cost drops significantly for cars older than 10 years.
- Green cars are the cheapest colour to insure, while black cars are the most expensive.
- Electric vehicles (EVs) are more expensive to insure than petrol cars.
New Mozo research reveals Australians are paying 47% more than they did five years ago, surging to an average cost of $1,472 per year ($123 monthly).
Four in five drivers (80%) told Mozo their car insurance premiums increased in the last year – and a third (34%) said they increased between $120 and $600 a year.
However, Mozo’s research also found that the price of a car insurance policy can vary significantly between states and territories, driver profiles, and vehicle types.
Average car insurance premium by Australian state or territory
Car insurance premiums vary enormously by Australian state and territory, Mozo found. On average, Victoria ($1,817) and NSW ($1,717) have the highest yearly premiums. The Northern Territory ($1,685) is also at the high end, but wet season flood risk can partially explain this.
States with smaller populations – and thus fewer drivers on the road – tend to be cheaper, such as Tasmania ($1,183) and Western Australia ($1,264).
Queensland ($1,285), ACT ($1,310), and South Australia ($1,295) make up the middle of the road for car insurance costs.
Electric vehicles (EVs) are generally the most expensive fuel type to insure, at an average annual premium of $2,517. In fact, EVs beat other fuel types by a country mile in annual price.
Hybrid vehicles were the second most expensive to insure, at $1,816 per year ($700 less than EVs).
The cheapest vehicle to insure by fuel type is a standard petrol car, with an average yearly premium of $1,380.
| Petrol cars | $1,380 |
| Diesel cars | $1,655 |
| LPG cars | $1,788 |
| Hybrid cars | $1,816 |
| Electric cars | $2,517 |
Of course, there’s nothing in this article to explain why costs have gone up so much such as ADAS features, EV repair procedures and the general complexity of repairing today’s cars. You can read the full article here.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.